PBR

ATCO PBR2 Plan Review – Evidence and Arguments

In proceeding 28300, the Alberta Utilities Commission (the Commission) hears arguments for and against whether the plan for the second term of performance-based regulation (PBR2) of ATCO Gas and ATCO Electric (ATCO) was flawed; and if so, whether it is reasonable to re-open the plan. In proceeding 20414, the Commission set out a reopener provision allowing for the review of PBR plans if a utility’s return on equity (ROE) is 300 basis points above or below the approved ROE for two consecutive years, or if it is above or below 500 points in a single year. ATCO exceeded the 300-basis point threshold for 2021 and the 500-basis point threshold for 2022, triggering this current proceeding.[1]



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Evidence on PBR3 Parameters

In proceeding 27388, intervenors submit evidence to the Alberta Utilities Commission (the Commission) in setting formula parameters for the third term of performance-based regulation (PBR3). The Commission asked intervenors to address seven specific issues:

  • Rate adjustment timing.
  • The type of PBR plan used to regulate electric and gas distribution facility owners (DFO).
  • The I Factor.
  • The X Factor.
  • Capital funding provisions.
  • Earnings sharing and efficiency carry-over mechanisms.
  • Efficiency tracking.

Intervenors each provided evidence that address at least one of these issues.



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The Issues List for Setting PBR3 Parameters

In Proceeding 27388, the Alberta Utilities Commission (the “Commission”) issues its ruling on the issues list for determining the parameters of the third term of performance-based regulation (‘PBR3”).

Background

In our previous article, we described how the Commission concluded that the first and second PBR terms had generally achieved their objectives and sought input on which parameters from the previous PBR terms should be included in PBR3.

The Commission received feedback from twelve participants who each submit a list of the potential issues they wanted to be addressed in this proceeding.



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The Commission’s Decision on ATCO and Apex’s 2023 Cost-of-Service Review

In proceeding 26616, the Alberta Utilities Commission (the “Commission) issues its decision regarding the cost-of-service review for both ATCO Gas (“ATCO”) and Apex Utilities Inc. (“Apex”) in preparation for the third term of performance-based regulation (“PBR3”).

Background

Readers may remember our previous article summarizing ATCO and Apex’s cost-of-service rebasing application whereby both utilities realign their distribution facility owner costs and revenues in preparation for PBR3. The intervenors argued that the applicants had not demonstrated how they would share efficiencies with ratepayers, that efficiencies should be quantified, that the applicants’ cost escalators overstate actual costs, and that certain capital projects should be excluded from each applicant’s rate base. The applicants responded by stating their efficiencies would be shared through lower rates, that their escalators are based on reasonable factors, and that the capital projects under question are prudent and necessary.



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ATCO & Fortis’s 2023 Cost-of-Service Decision

In proceeding 26615 the Alberta Utilities Commission (the “Commission”) issues its decision regarding the cost-of service reviews proposed by ATCO Electric Ltd. (“ATCO”) and FortisAlberta Inc. (“Fortis”) in preparation for the third term of performance-based regulation (“PBR”).



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The Commission’s Objectives and Preliminary Issues for the PBR3 Parameter Plans

The Alberta Utilities Commission (AUC) has posted preliminary issues for proceeding 27388 to establish parameters for the upcoming third term of PBR.



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EPCOR’s Negotiated Settlement Agreement Regarding its 2023 Distribution Cost-of-Service Application

In Proceeding 26617, EPCOR Distribution & Transmission Inc. (”EPCOR”) submits its negotiated settlement agreement (“NSA”) regarding its distribution cost-of-service application (the “Application”) to the Alberta Utilities Commission (the “Commission”) for review and approval.



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ATCO & Fortis 2023 Cost-of-Service Review Arguments

Argument and reply argument have been submitted in AUC proceeding 26615 on ATCO Electric Ltd. (ATCO) and FortisAlberta (Fortis) cost rebasing in preparation for the next PBR term. ATCO and Fortis defended their proposals against the claims and concerns of consumer groups; Consumer Coalition of Alberta (CCA), Utilities Consumer Advocate (UCA) and The Industrial Power Consumers Association of Alberta (IPCAA).



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ATCO Gas and APEX Utilities 2023 Cost-of-Service Applications

In Alberta Utility Commission (AUC) proceeding 26616, ATCO Gas Ltd. (ATCO) and APEX Utilities Inc. (APEX) submit their respective 2023 cost-of-service (COS) applications for revenue requirement. ATCO additionally requests approval for its proposed hydrogen related projects, and APEX submits its review of inter-affiliate charges.



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2023 Cost of Service Applications in Preparation for PBR’s Third Term in Alberta

In Alberta Utility Commission (AUC) proceedings 26615 and 26616, ATCO Electric Ltd. (ATCO Electric), ATCO Gas North (ATCO Gas), FortisAlberta Inc. (Fortis), and APEX Utilities Inc. (APEX) are in the process of submitting their 2023 Cost of Service (COS) applications to the AUC, which will realign their COS and revenue requirement for the anticipated third term of performance-based regulation (PBR).



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